01769cas a2200253 a 4500 AALejournalIMF008665 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451858297 1018-5941 BD-DhAAL BD-DhAAL Hausmann, Ricardo. The Challenge of Fiscal Adjustment in a Democracy : The Case of India / Ricardo Hausmann, Catriona Purfield. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students India's fiscal problem has deep roots in its federal fiscal system, where multiple players find it difficult to coordinate adjustment. The size and closed nature of the Indian economy, aided by its deep domestic capital market and large captive pool of domestic savings, has disguised the cost of fiscal laxity and complicated the building of a consensus on reform. The new fiscal responsibility act establishes a new rules-based system to overcome this coordination failure. To strengthen the framework, we recommend an autonomous scorekeeper and the extension of similar rules to the state governments as part of a comprehensive reform of the federal system. Mode of access: Internet Purfield, Catriona. IMF Working Papers; Working Paper ; No. 2004/168 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/168/001.2004.issue-168-en.xml IMF e-Library